The last quarter of the financial year is always the time banks compete heavily for business in relation to equipment and vehicle finance. This means any client looking to purchase or upgrade any business equipment or purchase a new motor vehicle can take advantage of very competitive finance terms.
Business finance tailored to work for you
At Prosperity we have recently organised finance for a $80,000 IT upgrade, $550,000 of graphic design and audio-visual equipment, and $600,000 for the fit out of new medical consulting rooms. As you can see the assets and total funding required can come in all shapes and sizes. Importantly the business can fund 100% of the purchase price and not tie up valuable collateral security with their incumbent banker. Banks are also flexible around term and residual value (if any) to make sure the monthly payments work for the business from a cash flow perspective.
$30,000 instant asset write-off
Along with the recently announced and extended instant asset write off of up to $30,000, businesses can purchase assets in the current financial year, fund the purchase and immediately depreciate the asset in full. This initiative was recently extended in the federal budget and is applicable to all businesses with an annual turnover less than $50 million. Importantly this applies to the cost of the individual asset purchased so you will be eligible to depreciate multiple assets in their entirety if they cost less than $30,000 each. For those assets costing greater than $30,000 then normal depreciation rates would apply.
It might also be an opportunity to consider financing those purchases through an appropriate asset finance contract. At Prosperity we have relationships with all the major lenders in the market place to ensure we can get you the Asset Finance contract that works best for you and allows you to preserve your precious business cashflow for other requirements. If you act prior to the end of June you can get the equipment you require to grow your business, finance it through a competitive Asset Finance contract and get the tax advantages of 100% depreciation in the current financial year.
If this sounds like something you would like to know more about, please contact Prosperity or call our Head of Leasing and Lending, Alex Warian, on 02 8262 8756.